Opposition leader Charles Mangion, the Labour spokesman on finance, has demanded an explanation as to how the financial deficit and public spending rose well above Budget projections in the first half of this year.

NSO figures issued last week showed the deficit growing by €80 million to €256 million. The public debt increased by almost €180 million when Budget projections provided for an increase of €110 million for the whole year.

Dr Mangion noted that recurrent expenditure was up 13.5%, which was well above economic growth. In the Budget, the government had said it expected recurrent expenditure to rise by €66.3 million for the whole of 2008 but in just six months it was by more than €123 million, Dr Mangion said.

Under the heading “projects and initiatives” the government had projected an annual spending increase of €50 million, yet this was already up to €93 million.

He said the government also needed to explain how a projected increase of €5million in spending on salaries had been exceeded three times over in six months.

Were such increases the result of incompetence, or had there been total disregard ahead of the general election?

Dr Mangion asked whether the fact that the government appeared to have withdrawn its promise to cut income tax was a case of deception, or whether it was the case that public finances were not on the firm footing which they were made out to be before the elections